Efficiency of Social Production, extremely important economic indicator characterising the relation between the economic results obtained by society and the costs. Under capitalism, costs are capital expenditures. As a result of production, the capitalists obtain profit. The rate of profit, regardless of how rationally production factors, including live labour, are used, is the criterion of production efficiency. Under socialism, the production costs are the expenditure of all the labour—the labour materialised in the means of production, and the labour of the aggregate worker, free from exploitation, organised in a planned way. The product created is the material basis for the satisfaction of the growing requirements of society as a whole and of all its members. Therefore, the efficiency of socialist production is expressed as the relation between the planned aggregate expenditure of living and materialised labour and its result—the mass of products manufactured to satisfy the requirements of society. The saving of work time, which makes it possible to increase the quantity of material wealth with the same outlays, is an important indicator of the efficiency of production. The domination of social ownership of the means of production presupposes a thrifty approach to social property, allows to concentrate the effort of the economic mechanism at boosting the efficiency of production, expands the boundaries of the use of new machinery, and creates broad possibilities for replacing arduous physical, monotonous labour by creative one. Production efficiency must be distinguished from the efficiency of 118 national economy, which expresses the result of the activity of society not only in the sphere of production but also in the spheres of distribution, exchange (/) and consumption. The efficiency of the economy is reflected in the increased and rational use of people’s spare time. There is also the concept of socio-economic efficiency, which characterises the performance of social production and of the entire economy more broadly, taking into consideration the results of society’s efforts in improving work conditions, enriching its creative content, and overcoming the essential distinctions between mental and physical labour. Thus, socioeconomic efficiency characterises the improvement of all aspects of the socialist way of life. This is manifested above all in the development of the personality, his or her abilities and talents. At the stage of developed socialism, it becomes necessary and possible to considerably increase the efficiency of production. Developed socialism is characterised by mature socialist relations of production, a diversely developed industrial base, a powerful economic complex, a sharp increase in the number of production means used, the on-going scientific and technological revolution, and the improvement of production methods and technology. A steady rise in well-being, which in turn is an important factor in increasing the efficiency of production, is achieved on this basis. Increasingly efficient production is the main condition for the victory of the socialist system in the competition of the two world economic systems. The necessity of increasing the efficiency of production in the USSR is also dictated by the current stage in the country’s development, the growing problem of manpower resources, the necessity of developing new sources of energy and raw materials, great expenditures on environmental protection and the development of the infrastructure, particularly building roads, warehouse facilities, transport, communications, and the material supply system. Further progress will to an increasingly great extent depend on skilful and effective use of all available labour resources, fixed assets, fuel and raw materials and farm produce. Higher labour productivity, an increased output-asset ratio and lower material intensity and energy expenditures per unit of production are indicators of the efficiency of industries and enterprises. High results are obtained where the improvement of these indicators is combined with increasing the quality of output and work performed. In general, the efficiency of socialist social production is expressed by the relation of the national income to the sum total of the aggregate labour expenditures for its production and the value of the production assets of the national economy (labour outlays and production assets are reduced to a single measuring instrument by using rated coefficients). Increased efficiency of social production is linked with improvements in the use of the country’s production and scientific and technical potential, and with the qualitative shifts in the economy. The intensification of production, broad-scale mechanisation of production, automation of production and other trends of scientific and technical progress, the introduction of the scientific organisation of production and labour, the improvement of the country’s economic structure, and the accelerated development of those industries ensuring a high economic effect are the main factors of growing efficiency. Of particular importance are: attaining a high economic efficiency of capital investment and of new machines in building new and reconstructing running enterprises;’ increasing technico-economic indicators and the quality of work at enterprises and associations; introducing the policy of economies throughout the national economy and production; and raising returns from every unit of material, labour and financial resources. To use the opportunities for increasing the efficiency of production to the maximum, the system of economic management and planning, i. e. the entire economic mechanism is being improved. The efficiency of production is raised through higher labour activity of the working people, through socialist emulation 119 aimed at increasing the efficiency and quality of work.